The Securities and Exchange Commission's order on Wednesday settles a long-running case against the nation's largest mutual fund manager, which was found to have accepted more than $1.6 million in perks from 2002 to 2004. The gifts included tickets to the Super Bowl and Rolling Stones concerts, private jet trips to exotic destinations, and fine wine and cigars, the SEC said.

The agency said some Fidelity traders accepted illegal drugs and trips to strip clubs paid for by brokers, and one trader's illegal gambling was facilitated by a broker.

In another case, a Fidelity equity trader organized his own three-day bachelor party in Miami, paid for by brokers at a cost of $160,000, the SEC said.

"Brokers hired two women to entertain the attendees at the party, and provided a bag filled with illegal drugs (ecstasy pills)" to the trader, the SEC said.

The investigation also found family and romantic relationships involving Fidelity employees and outside brokers influenced Fidelity's selection of brokers to handle trading business and receive millions of dollars in commissions.

Three of those charged, including Lynch, agreed to settle without admitting or denying the allegations. Ten others are contesting the charges, which will be argued in administrative hearings similar to a court cases. The 10 could face financial penalties and orders to give up ill-gotten gains, but not prison time.

"The broker selection process on Fidelity's equity trading desk was compromised when gifts and lavish entertainment swayed the flow of brokerage business," said Walter Ricciardi, the SEC's deputy director of enforcement. "This misconduct created a serious risk of investor harm and violated Fidelity's duty of allegiance and loyalty to investors."

The $8 million fine that Boston's Fidelity was ordered to pay is in addition to $3.75 million that four Fidelity brokerage units were fined a year ago by an industry self-policing organization now called the Financial Industry Regulatory Authority. And, after Fidelity ordered an independent review, the mutual fund manager said in December 2006 that it would pay at least $42 million in penalties to its funds as punishment over gifts its traders received from brokers.

Fidelity said in a prepared statement that by agreeing with the settlement, the company neither admits nor denies the SEC findings.

"Although the order makes no finding of financial harm to our shareholders or our funds, we do recognize the seriousness of the misconduct found by the SEC," Fidelity said.

At issue is whether investors may have paid higher costs because Fidelity directed trading business to brokerages that enticed Fidelity traders with gifts but not necessarily the best service. Mutual funds are required to disclose payments that might affect their decisions, and industry rules prohibit such gifts if they are worth more than $100.